Page 1 of 10
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 107
Analysis on why Development Policies fail in Nigeria
Charles Agwu
PHD student, Department of Economics, School of Business and Economics, Atlantic International University, USA
Abstract:
The need to achieve development is
of important to countries and development
policies and plans are implemented with the
aim of achieving economic development.
The research paper examines why
development policies fail in Nigeria and in
other to examine this, the following
objectives were establish: to assess different
national development plan in Nigeria, assess
why development policies fail in Nigeria,
explain major economic principle relevant
to industrial development, explain policies
options available for development and
suggest other measures for achieving
development in Nigeria. The researcher
recommend on the need for government to
minimize the rate of corruption and also to
ensure policies consistence in government
policies.
Keywords: development policies and
Nigeria
1.0 Introduction:
All over the world development
policies are strategic in nature and this is
based on its cost to the society and also it’s
irreversible doctrine. Development policies
are long terms and in some cases are called
industrial policies and this is because it
focuses more on industrialization on an
economy.
Howard Pack (2000) states that
“industrial policies comprise a variety of
actions designed to target specific sectors to
increase their productivity and their relative
important within the manufacturing
sector. Within the Nigeria economy there
have been different developmental policies
implemented by the previous and current
administration with the aim of improving
the economy in terms of making it among
the best 20 economy in the world by the
year 2020 (vision 20:20:20). Most of these
policies are on infrastructure through
private public partnership (PPP) in which
the private sectors to invest billions of
dollars in road construction, power, health
etc.
The implication of these policies is
that the private sectors are met to manage
these investments within a time period
usually 20 years and above in which they
can hand it over to the government. Also
the current administration understand the
need of better education system to an
economy and this could be seen by the
creation of additional nine federal
universities and the approval of more than
fifteen private universities with the aim of
developing and improving the Nigeria
economy. Also there have been optimal
industrial polices drive in the country with
the aim of attracting investment so as to
create employment and also improve the
per capita income of the Nigeria
population.
Upon all these policies implemented
in Nigeria, the country have not reach its
peak in terms of achieving economic
Page 2 of 10
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 108
development by when using all
development index such as employment
rate, per capita income etc. also in some
cases, most of these policies failed and this
is as a result of different factors which in
return lead to additional waste to the
country. All these problems on why
development policies failed in Nigeria will
be examined in this research paper.
1.1 Purpose of Study:
The overall objective of this study is
to analyze why development policies fail in
Nigeria. Also other objectives in which this
research paper will address are;
i. To assess different national
development plan in Nigeria
ii. Assess why development policies
fail in Nigeria
iii. Explain major economic principle
relevant to industrial development
iv. Explain policies options available for
development
v. Suggest other measures for achieving
development in Nigeria.
1.2 Significant of Study:
The study is both for academic use
and non-academic use. The study is of
important for students that want to carry out
research on development policies and
problems. The study will also be of
importance for those in authorities and this
is based on the fact that it will explain on
why development policies failed and
provide alternative policies for development.
2.0 Overview of development:
In it’s simply form; development is
defined as an increase in per capita income
plus desirable social changes. According to
Gboyega (2003), development is an idea that
embodies all attempts to improve the
conditions of human existence in all
situations. This means that development
must have a positive impact in terms of
improving the life of people and
infrastructure which are important in
creating employment, reducing poverty,
increasing per capita income etc.
Naomi (1995) is of the view that
development is not only about achieving
economic growth, but to achieve equitable
distribution of income, provision of health
care, education, housing and other essential
services all with a view to improving the
individual and collective quality of life.
Chrisman (1984) views development
as a process of societal advancement, in
which improvement in the well being of
people are generated through strong
partnerships between all sectors, corporate
bodies and other groups in the society.
Dudley Seers (1969) explain
development as appreciable and uniform
improvement in the general living standard
of people within an economy to the extent of
reducing poverty, unemployment and
inequality. Seer’s definition sees
development as an exclusive national
question. According to Seers (1969), in
other to explain development there is need
to for a country to analysis three key
questions which are: what is the rate of
poverty in the country? What is the rate of
unemployment? And is their efficient
income distribution in terms of reducing
Page 3 of 10
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 109
inequality? If all the three questions are
positive then we can said that the country
have achieve development.
2.1 Veritable development objectives:
All over the world the objectives of
an economy is to achieve development and
for less-developed countries it is of most
important and this is due to the rate poverty
level and decay in existing infrastructure.
Upon that the veritable development
objectives of a less-developed country like
Nigeria may be summarized as follows:
Appreciable growth in national
income that will raise per capita
income rapidly
Promotion of equitable income
distribution and social justice
Promotion of self reliant economic
development
Promotion of price stability
Promotion of fuller employment
Balanced socio-economic
development
Protection of the physical
environmental and ecological
balance
2.2 National development plan in
Nigeria:
The 1962-68 first national
development plan was simply a sum-total of
the four regional development plans and that
of Federal Government, all of which
consisted of independent project. The major
development objectives of the plan are;
achieve a target 4.0% per annum national
income growth, achieve a self sustaining
growth, to facilitate a rapid development of
education, health and employment
opportunities for all citizens and to promote
stability of the Nigeria economy.
In addition to the previous policies,
the 1970-74 second national development
plan sought to promote a more self-reliant
industrial development and reduce foreign
domination of the industrial sector, as well
as promoting social justice and equity.
Towards this end, the Nigeria Enterprises
Promotion Act was enacted in 1973 to
reserve some businesses for Nigeria
entrepreneurs and restrict foreigners to more
complicated industries or in joint venture
with Nigerians.
The bright performance of the 1970-
74 plan and the oil boom seemed to have
encouraged the Federal Government to
pursue a more comprehensive and highly
ambitious industrial policy during the 1975-
80 and 1981-85 national plans. The
additional major emphasis in the
development objectives of the third national
development plan were the diversification
and balanced development of the economy,
promotion of full employment and high
level manpower development, and further
indigenization of the economy.
The fourth national development
plan had similar objectives as the third
national development plan. But realizing the
lack of self-reliance of the economy in spite
of previous efforts at diversifying the
economy and the continued over- dependence on oil and on imported inputs
and technology, the plan placed great
emphasis on promoting technological self- reliance and dependence on internal
